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PGGM achieves massive bandwidth increase and lower Total Cost of Ownership thanks to ProCurve

“Thanks to ProCurve we have been able to balance incomes and expenditures and cut back total cost of operation by 30 per cent. Our network bandwidth has also increased ten-fold, which gives our users access to a much more powerful network. Due to the redundant implementation, the ProCurve network is considerably more stable than our previous Cisco environment.”

Hans de Harde
ICT architect at the IT
Operations department
PGGM
Netherlands

With around two million customers PGGM is the second largest pension insurer in the Netherlands and manages pension funds in excess of €80 billion. The organisation’s 1,000 co-workers are spread across four offices, which are all based in Zeist, Netherlands.

PGGM puts a great emphasis on innovation and aims to offer its clients products and services which are in line with the latest developments in the market.

However, innovation demands state-of-theart technology that offers the flexibility to quickly react to change. The network infrastructure that PGGM had been using previously was based on Cisco technology which was failing to deliver the required flexibility, as Hans de Harde, ICT architect at the IT Operations department at PGGM explains. “The infrastructure we were using previously had been put in place eight years ago. Naturally, we had changed a few components over the years, but the network infrastructure itself was never updated. Thus, it was never re-aligned with new technologies such as video streaming and Voice over IP (VoIP), and because our network had grown enormously in recent years, managing it had become ever more problematic.”

The old network also came with a big disadvantage: its Total Cost of Ownership (TCO) was disproportionately high. “Our services to internal customers are annually benchmarked by Gartner. This is used as a basis to determine which prices we may pass on to the departments. The maintenance costs for our previous network were so high that our incomes under those conditions were somewhat lower than our expenditure,” explains De Harde.


Flexible and robust
PGGM decided to design and implement a new network infrastructure which would resolve these issues. PGGM created the functional and architectural network design itself, and defined the requirements that the new network had to fulfil. One important priority was the need for flexibility, building a future proof network, to cater for video streaming and VoIP. Furthermore, the network had to meet PGGM’s requirements with regards to robustness, security, manageability, scalability and speed. However, the most important condition was that the TCO had to be reduced by at least 30 per cent.

After an extensive selection programme, PGGM decided to implement a new network infrastructure based on ProCurve technology. One of the key factors in the decision to use ProCurve was the superior return on investment due to the competitive price on initial purchase, and low maintenance costs. But in addition, ProCurve’s Adaptive EDGE Architecture™ was also perfect for integrating with PGGM’s own architecture design. “One of the functional requirements we defined for the new infrastructure, was that intelligence had to be at the edge of the network – and the Adaptive Edge Architecture supports this principle comprehensively,” adds De Harde.

ProCurve’s Adaptive Edge Architecture enables businesses to complete IT initiatives while turning their networks into strategic assets. To help businesses such as PGGM to achieve this, ProCurve offers open standards-based products that fortify security, increase productivity and reduce complexity in the enterprise.

In terms of network management, ProCurve offers PGGM many advantages. “In the past we configured the MAC address of each PC on the network port it was connected to. Therefore, every time we wanted to add or remove PC’s, we had to manually reset network ports. ProCurve’s technology is based on the 802.1X standard, which now makes life a lot simpler. Each PC now has its own digital certificate and can be connected via any network port in the building: the network checks the certificate and, if this is recognised, automatically offers the PC access to the appropriate virtual network for that user,” explains De Harde.


ProCurve Identity Driven Management
ProCurve Identity Driven Management (IDM) makes it possible to automatically connect users to the virtual network from their own business unit. “The various business units within PGGM each have a virtual network which may only be accessed by their employees. In the past, we had to configure user access rights using MAC authentication on each port in combination with centralised Access Control Lists (ACL). If a user wanted to access their business unit’s virtual network from another location, this had to be processed manually. However, with ProCurve IDM, both the PC and the user are automatically recognised and connected to the appropriate virtual network. Thus workers have greater flexibility in selecting their work place, without requiring someone from our department to be present,” says De Harde.

PGGM’s state-of-the-art network is now equipped with ProCurve 5406 switches in the core, various ProCurve switches in the distribution and access layer, ProCurve 5412 switches for Point of Entry functionality and ProCurve Manager Plus (PCM+) for central network management. The large switches can be found in two computer rooms based at the two most remote parts of the building. The access switches have been placed throughout the building within 50 metres of each other. The various switches are interconnected via Gigabit fibre optic links. In order to guarantee high availability, the entire network has been designed to be fully redundant.


Reducing total cost of operation by 30 per cent
The new ProCurve solution fulfils all of PGGM’s expectations. “Thanks to ProCurve we have been able to balance incomes and expenditures and cut back TCO by 30 per cent. Our network bandwidth has also increased ten-fold, which gives our users access to a much more powerful network. Due to the redundant implementation, the ProCurve network is considerably more stable than our previous Cisco environment,” says De Harde, who also speaks in glowing terms about ProCurve’s network management. “ProCurve Manager means that we spend a lot less time managing the network.”

According to De Harde, another important business benefit is the enormous cost reduction that PGGM has managed to realise. “As a result of much lower purchase and maintenance costs, we have been able to cut back total cost of operation by 30 per cent,” confirms De Harde.

PGGM is currently busy preparing for video streaming and VoIP. “In the summer, the whole organisation will be able to make use of video conferencing facilities. We have now established VoIP at one of our four premises, and that is where we will test-run this new technology. In 2010 the whole organisation will switch to VoIP, and we have complete confidence that our new ProCurve network will ensure a smooth change-over following the impressive results we have already,” says De Harde.


Seamless transition
The upgrade to the new ProCurve network took place without incident. “For an organisation like ours, which is entirely dependent on well-functioning IT, such a step is a bit like open-heart surgery,” states De Harde. “Not only did the system in question have to be halted, but all other automated IT systems were also brought to a halt. At such a time, the chances of malfunction are incredibly high, and because we were prepared for all eventualities, all our suppliers were on stand-by, however, none of them were called upon.”

“The team at ProCurve were very willing and flexible with regards to the times when implementation had to take place.”

Other aspects in the ProCurve partnership were also identified by De Harde. “ProCurve is a lot more flexible than Cisco. In addition to offering free software updates for the life of the product, ProCurve is also prepared to implement changes or adjustments to functionality which we regard as necessary or desirable – this would have been unthinkable with Cisco. And furthermore, the comprehensive lifetime warranty provided by ProCurve is a great value-add. Naturally, equipment like a switch does not malfunction often but, if it should, we have the consolation that it will be replaced free of charge,” concludes De Harde.

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Customer at a glance

Industry sector: Financial services/Pensions
Name:
PGGM
Headquarters:
Zeist, Netherlands
Founded:
1970
Telephone:
+31 30 277 99 11
Number of employees:
1,000

» www.pggm.nl

Key technologies

Primary Applications

Networking services

Primary hardware

ProCurve 5406 switches in the core
ProCurve 5412 switches for Point of Entry functionality

Primary software

ProCurve Identity Driven Manager (IDM)
ProCurve Manager Plus (PCM+)

More information

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Challange

• PGGM administers the compulsory pensions scheme for the Netherlands’ healthcare and social work sector. To support its underlying objective of excelling in every aspect of its business, PGGM decided to replace its entire Cisco network with a new infrastructure to enable it to multiply bandwidth and reduce the network’s Total Cost of Ownership (TCO).
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Solution

•  After an extensive selection programme, PGGM decided to implement a new infrastructure based on ProCurve Networking technology.
•  Key factors in this decision were ProCurve’s Adaptive EDGE Architecture™ which integrates perfectly with PGGM’s own architecture design. The network scalability and ability to support future objectives, price of purchase and low maintenance costs were also important.
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Results

  IT improvements
• Simplified network management thanks to ProCurve Manager Plus (PCM+).
•  New ProCurve network supports future business objectives such as VoIP.
•  Secure, robust, scalable network that meets all PGGM requirements.
  Business benefits
•  Reduced TCO by 30 per cent compared to Cisco environment.
•  ProCurve Identity Driven Manager (IDM) makes it possible to automatically connect users to the virtual network from their own business unit.
•  Increased bandwidth by ten fold offering users more capacity.
•  ProCurve network is more stable than previous Cisco infrastructure.
•  Smooth transition with minimal business downtime.
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